DairyTalk 173: The Triple Cushion Trap - Why Today’s Profits Won’t Save Dairy Farms - by Helmut Demmelhuber

DairyTalk by Helmut Demmelhuber · Dec 20, 2025 · 14m

Many mid-size dairy farms are performing well - but for the wrong reasons. High beef-on-dairy premiums, low feed costs, and supportive milk margins have created a dangerous illusion of security. According to this analysis, all three cushions are likely to collapse by late 2026, just as the U.S. dairy herd reaches record size and replacement heifer numbers hit historic lows. This episode explains why waiting is the biggest risk and why contracts, herd size decisions, and revenue diversification must be addressed now to survive the next phase of consolidation. With comments on a "The…